Tennessee Code Title 35. Fiduciaries and Trust Estates § 35-15-819

(a) Unless the terms of a trust instrument expressly provide that a settlor shall not be reimbursed by a trust for the settlor's personal income tax liability attributable to the trust, if the settlor of a trust is treated under 26 U.S.C. § 671 et seq. as the owner of all or part of the trust, then a disinterested trustee, in the disinterested trustee's sole discretion, or another trustee at the direction of a trust advisor or trust protector who would be treated as a disinterested trustee and otherwise has the power to direct discretionary distributions under the trust instrument, may reimburse the settlor for any amount of the settlor's personal federal, state, local, foreign, or other income tax liability that is attributable to the inclusion of the trust's income, capital gains, deductions, and credits in the calculation of the settlor's taxable income under principals of 26 U.S.C. § 671 et seq.  The trustee may pay such amount to the settlor directly, or may pay the amount to an appropriate taxing authority on the settlor's behalf, as the trustee determines in the trustee's sole discretion.  This power shall in all cases be exercised in the sole and absolute discretion of a disinterested trustee or trust advisor or protector who would be treated as a disinterested trustee, and no settlor or other person may compel the exercise of this power or enter into an express or implied agreement or understanding regarding the exercise of such power.  No policy of insurance on the settlor's life held in the trust nor the cash value of any such policy, nor the proceeds of any loan secured by an interest in the policy may be used to reimburse the settlor or to pay an appropriate taxing authority on the settlor's behalf.  Neither the trustee's power to make payments to, or for the benefit of, the settlor under this section, nor the trustee's decision to exercise such power in favor of the settlor, causes the settlor to be treated as a beneficiary of the trust for any purpose.

(b) This section does not apply if the application of this section would disqualify a trust for, or reduce the amount of, a marital deduction, a charitable deduction, or another specific tax benefit otherwise available to any person for state or federal income, gift, estate, or generation-skipping transfer tax purposes.

(c) The power described in this section becomes exercisable on and after December 31, 2025, and applies to trusts existing before, on, and after such date.

(d) The person otherwise having the power to exercise the discretion described in this section may at any time renounce the power in writing and, unless otherwise limited, such renouncement applies permanently with respect to the trust as a whole, such that a person does not have this power with respect to the trust at any time after the renunciation.

(e) A person is not liable for exercising or failing to exercise the power described in this section, or for exercising or failing to exercise the ability to renounce such power.